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Can I Insure Used Auto from Salvage Car Auctions in Texas?

By Mike Richards Updated: 04/07/2020 Posted: 10/15/2015

While it might be possible to find some cheap used cars at dealers, one of the options that many Texans are turning to is the salvage car auctions in Texas. These auctions can provide you with a wide range of different types of vehicles at great prices. In fact, it is often possible to save thousands of dollars when you buy through a salvage Dalla and Texas auto auction.

However, a salvage auction will mean that you will have a vehicle with a salvage title. A car that has this title means that the insurance company considers it totaled. This doesn’t necessarily mean that it’s a bad vehicle to buy, though. However, you can’t drive these vehicles, and you can’t get insurance on them. You have to restore the vehicle first in order to get a salvage rebuilt title from the state of Texas. Only then will you be able to get insurance.

Why Is Salvage a Good Option for Cheap Used Cars?

The top reason is because it is possible to save so much money when you are buying these vehicles. Part of the money in the budget can then be put into getting the vehicle restored. Even when you consider the cost of restoration, it is often still cheaper than buying a new vehicle or even a used vehicle from a dealer or private seller in many cases.

Before you can get your rebuilt salvage title, though, you must complete the repairs and pass an inspection. Once this is done, you are then able to get your title. You will need to turn in a substantial amount of paperwork with these vehicles for the title, though. This includes evidence of ownership, a rebuilt affidavit, major component part description, owner information, Form MVT-9 that shows evidence of the inspection, an odometer disclosure statement, ID certificate and proof of insurance.

Getting Insurance

Buying insurance for a vehicle that’s been rebuilt is not overly difficult in Texas, as long as you are only looking for liability insurance. Most insurance companies will have no problem providing this basic insurance since it does not actually cover your vehicle. Instead, it covers damages for any vehicles or property that you might hit with your car. Liability insurance is all you need to satisfy the requirements for getting a title in Texas TX for your rebuilt vehicle.

However, you might want full coverage. This is much more difficult to get when you have a rebuilt title. In fact, many insurance companies will flat out decline this type of coverage for your vehicle, since it can be difficult to determine the actual value of a rebuilt vehicle. Still, there are some companies out there that are willing to provide coverage, so keep looking and talking with insurance companies.

Are Cheap Used Cars Worth the Time?

Since you will have to rebuild the car and you may have trouble getting full coverage, some in Texas might wonder whether they should bother with cheap used cars from salvage auctions for public or dealers using. Take time to consider the potential financial savings with these types of vehicles. You will save on the initial cost of the vehicle. You might save enough that it can help to offset the cost of the repairs nicely.

Once they are rebuilt and have gone through an inspection, they are as good as any other vehicle. With proper maintenance, it is possible to get a lot of mileage out of these vehicles. The cheap used vehicles you find through these auctions could be a nice solution for many prospective buyers out there.

Read more on the official Procedures in This State, or on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions and find info on Buying With Us.